Commission commences examination of automotive industry support

The Government has long been committed to ensuring Australia has a competitive manufacturing sector, including a sustainable and profitable automotive manufacturing sector.

The Government has therefore tasked the Productivity Commission to examine the best way that the Australian Government and Australian economy can ensure the ongoing viability of the automotive industry.

The changing international automotive environment, including further potential for Australian made cars to be exported overseas, and the type and level of support provided to overseas manufacturers;

The changing nature of domestic demand and consumer preferences, including demand for new products and technologies; and

Australia’s attractiveness as an investment location for all phases of automotive manufacturing activity.

This inquiry will provide the Government with necessary information to respond to the challenges facing the car industry in a measured way that will focus on long-term sustainability and will identify options that are sustainable, accountable and transparent.

As the Australian Government, the manufacturing industry, employees and consumers need policy certainty to plan for the long term, the Productivity Commission has been asked to deliver an interim report to the Government by 20 December 2013, with the final report due to the government by 31 March next year.

The Government is already implementing significant measures that will assist the Australian automotive industry.

The Government has pledged not to proceed with the previous Government’s $1.8 billion Fringe Benefits Tax hit on the automotive sector.

Further, we have already released draft legislation to rescind the carbon tax.

The carbon tax adds, on average, $400 to the cost of every vehicle produced in Australia.

It is vitally important that the Australian automotive industry is sustainable, internationally competitive and integrated with the broader global automotive sector.

Interested parties are invited to make a submission to the Commission.

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